The One-, Six- and Twelve-Month Eurodollar LIBOR Rates Declined Today

Image courtesy: The Wall Street Journal OnlineRight now, the yield on the 3-month U.S. Treasury Bill is 0.06%. Therefore, the 3-month TED spread is currently 0.2125percentage point; it was 0.2275 yesterday, 0.22906last Friday and 4.60875 on October 10, 2008 during the peak of the global credit crisis.

For the 3-month TED spread, a figure between zero and 0.50 percentage point (0.50 percentage point = 50 basis points) is a strong indication that large, international banks are lending money to each other with confidence.

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